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business A15
Thursday, February 2, 2017 guardian.co.tt
FRANKFURT, Germany---Volkswagen has
agreed to pay at least US$1.2 billion in
buybacks and compensation to settle
claims from US owners of cars with
larger diesel engines that the compa-
ny rigged to cheat on emissions tests.
And the German automaker could pay
even more---as much as US$4 billion---if it
can't repair many of the cars in a way that
satisfies regulators.
The proposed settlement filed late Tues-
day before Judge Charles R Breyer in US Dis-
trict Court in San Francisco covers owners of
some 78,000 Audi, Volkswagen and Porsche
VWtopayuptoUS$4bn
to US owners of big diesels
cars with 3.0-litre diesel engines.
Volkswagen has already agreed on a US$15 billion
settlement with owners of some 500,000 smaller,
2.0-liter diesel engines.
Volkswagen has now settled most US consumer
claims as it tries to repair a tarnished reputation. "All
of our customers with affected vehicles in the Unit-
ed States will have a resolution available to them,"
Hinrich J Woebcken, head of Volkswagen Group of
America, said in a statement.
The company still faces lawsuits from fewer than
5,000 owners of 2.0-litre diesels who opted out of
the settlement, as well as some shareholder suits
and numerous lawsuits filed by states for violating
pollution laws.
VW also has settled a US criminal investigation by
agreeing to pay $4.3 billion, but a probe of employee
behaviour continues with seven people charged in the
US. In all, VW will pay more than $20 billion to settle
civil and criminal claims in the US alone.
Also pending is whether VW can adequately fix
some older 2.0-litre engines. If it can't, VW will
have to buy back all vehi-
cles with the smaller diesel
engines. A March 3 dead-
line is approaching.
Legal issues also re-
main in Europe. Former
CEO Martin Winterkorn
and 36 others are under
criminal investigation in
Germany, where investors
also are suing the company.
Volkswagen shares plunged
after the scandal broke in September of 2015.
Under Tuesday's proposed settlement, owners
of 20,000 older 3.0-litre models dating back to
2009-2012, which cannot be fixed to meet pollu-
tion standards, will be offered buybacks or trade-ins.
In addition, they will receive compensation ranging
from US$7,755 to US$13,880, according to a statement
from owners' attorneys.
People who bought 58,000 newer cars from model
years 2013-16, which can be fixed, will get compen-
sation of US$7,039 to US$16,114. Volkswagen says
those cars can be made to comply with pollution
limits. If VW can't fix the newer cars to regulators'
satisfaction, then the owners' attorneys will go back
to court to seek buybacks.
VW's proposed repair must win approval from US
environmental authorities by an agreed deadline. If
not, buybacks could push the cost as high as the $4.04
billion laid out in court documents.
The deal must still get court approval to take ef-
fect. Volkswagen said final approval would take at
least until May.
Also Tuesday, parts supplier Robert Bosch GmbH
agreed to pay US$327.5 million to settle claims from
consumers and dealers regarding 2.0-litre and 3.0-li-
tre engines, while not accepting it was at fault. Typ-
ical 2.0-litre owners will get US$350 in addition to
what they get from VW, while 3.0-litre owners will
get about US$1,500, said Elizabeth Cabraser, lead
attorney for the owners. Bosch made the so-called
"defeat device" that enabled the cheating.
Bosch CEO Volkmar Denner said the company
settled so it could focus on its business.
Cabraser said she's confident that the VW settle-
ments will be completed even if President Donald
Trump cuts personnel at the EPA, which has to review
all of the engine repairs, noting that Breyer and the
California Air Resources Board are still involved. The
former head of Trump's transition team at the agency
has said he expects significant budget and staff cuts.
Wolfsburg-based Volkswagen has admitted it
equipped diesel engines with software that detect-
ed when the vehicle was being tested and turned the
emissions controls off during every day driving. The
result was cars that emitted some 40 times the US
limits of nitrogen oxides, a pollutant that can harm
people's health. Some 11 million cars worldwide have
the deceptive software. (AP)
VW also has settled a
US criminal investigation
by agreeing to pay $4.3
billion, but a probe of
employee behaviour
continues with seven
people charged in the
US. In all, VW will pay
more than $20 billion to
settle civil and criminal
claims in the US alone.